Jakarta: The Financial System Stability Committee (KSSK) stated on Wednesday that Financial System Stability in the first quarter of 2019 was well maintained.
Minister of Finance Sri Mulyani Indrawati who is also Chair of KSSK said that the conclusion was based on the results of research and observations of KSSK member institutions on national and global economic developments.
"KSSK monitored a number of potential risks, especially those from the global economy, namely global economic growth weakening and the decline in world trade volume," the Ministry of Finance's website quoted the former World Bank managing director as saying.
From the domestic side, the challenge faced was to maintain the momentum of economic growth by stimulating investment and exports while maintaining financial system stability. On this occasion, the Minister of Finance also explained the performance of the State Budget that remained good and controlled.
"KSSK continued to strengthen coordination of monetary, fiscal, macroprudential, microprudential and deposit guarantee policies to continue to maintain economic stability, the financial system and sustain the momentum of our economic growth," she said.
In the monetary sector, Bank Indonesia (Bl) focused on the policy of interest rates and exchange rates to strengthen the external stability of the economy, particularly to control the current account deficit within safe limits and maintain the attractiveness of domestic financial assets.
According to BI Governor Perry Warjiyo, Bl maintained its benchmark interest rate (Bl7DRR) of 6 percent during the first quarter of 2019. At the same time, Bl also took a number of more accommodative policies to encourage domestic demand.
In the financial services sector, the Financial Services Authority (OJK) also stated that Financial System Stability was well maintained, supported by adequate capital and liquidity of Financial Services Institutions.
According to the Chairman of the OJK, Wimboh Santoso, Financial Services Institutions' intermediation performance also grew positively with a well-managed level of risk.
Meanwhile, the Indonesia Deposit Insurance Corporation (LPS) explained that the level of public trust in the security of their deposits remained high, where there was no extraordinary fund movement.
Chairman of LPS, Halim Alamsyah, assessed that the increase in deposit interest rates in general has been sloping and stable, in line with the improvement in banking liquidity conditions.